GDP Calculator
Calculate Gross Domestic Product using Expenditure and Income Approaches
Expenditure Approach
GDP = Personal Consumption + Gross Investment + Government Spending + Net Exports
GROSS DOMESTIC PRODUCT
$25,500B
Expenditure Approach
Resource Cost-Income Approach
GDP = GNP + Indirect Business Taxes + Depreciation + Net Income of Foreigners
GROSS DOMESTIC PRODUCT
$25,500B
Resource Cost-Income Approach
Understanding GDP Calculation Methods
💰 Expenditure Approach
The expenditure approach calculates GDP by summing all expenditures made for final goods and services in an economy.
GDP = C + I + G + (X – M)
- C (Personal Consumption): Spending by households on goods and services
- I (Gross Investment): Business investments in capital goods and inventories
- G (Government Spending): Government consumption and investment
- X (Exports): Goods and services produced domestically but sold abroad
- M (Imports): Goods and services produced abroad but sold domestically
This approach measures the total demand for goods and services in an economy.
📊 Resource Cost-Income Approach
The income approach calculates GDP by summing all incomes earned by factors of production in an economy.
GDP = GNP + Indirect Taxes + Depreciation + Net Foreign Income
First calculate GNP:
GNP = Employee Compensation + Proprietors’ Income + Rental Income + Corporate Profits + Interest Income
- Employee Compensation: Wages, salaries, and benefits
- Proprietors’ Income: Income of self-employed individuals
- Rental Income: Income from property ownership
- Corporate Profits: Profits of corporations
- Interest Income: Income received from lending money
Then convert GNP to GDP by adding indirect business taxes, depreciation, and net foreign income.